Progressive insurance is a powerhouse when it comes to insurance advertising.
Their newest line of television commercials focus on their “bundling” program, i.e. purchasing home and auto insurance together with Progressive.
The point being, when you bundle your home and auto insurance with Progressive, you save money by qualifying for a “multi policy” discount.
Everything is pretty cut and dry up to that point and not too earth shattering, as many insurers offer a similar discount as a way to capture more insurance per household.
Being that it’s TTAI’s business to review the many available insurance products out there, we thought we’d give this one a shot, but ran into a snag.
You see, Progressive does not “write” homeowners insurance. They just “sell” it.
Progressive acts as an insurance agent by soliciting insurance business, and then forwards that piece of business to an insurance company that collects the insurance premium dollars and pays any covered insurance claims.
On their website, you’ll see something to the effect of property insurance being provided and serviced by a trusted, third party.
What Is Progressive Home Advantage?
Here’s the disclaimer from their website, which we’ve printed in letters big enough to read:
*”Insurance policies purchased through the Progressive Home Advantage program are underwritten by leading providers of homeowners, renters and condominium insurance, including Homesite Insurance Group and IDS Property Casualty Insurance Company, depending on your state.
These companies are valued business associates that are not affiliated with Progressive, and are solely responsible for claims under insurance policies issued by them. Certain Progressive companies may be compensated as licensed agencies for performing services on behalf of these underwriting companies.”
ASI Lloyds was also added to that list at some point. In total, there are nearly a dozen companies that make up Progressive Home Advantage.
Why, Progressive, Why?
Why not? Insurance is, for the most part, somewhat of a “commodity” and certainly a “marketing” business.
While there is a lot to be said for customer service and financial stability, no carrier out there can get away with too much poor service or operate with a bad balance sheet due to the high level of regulation in the insurance industry…no matter what those television commercials try to tell you.
Progressive insures millions of people in the United States. What better way to solicit another “line” of insurance, homeowners in this instance, than to go after an existing client base.
It only makes sense to partner with a homeowners insurance company. Progressive gets to offer a discount and may get a cut of the profits from that line of insurance. No harm, no foul.
This is similar to Costco Home Insurance, which is resold by a third-party company to its shoppers who are probably more interested in buying food in bulk.
Does It Really Matter?
In short, no, not a bit. At the end of the day, if you obtain Progressive auto insurance and purchase homeowners insurance through one of their partner companies and it saves you money, you win.
But to be certain you receive the best deal, speak with a local independent insurance agent who can shop your premium with several different companies at once, not just those already doing business together.
There could be a better deal out there, and you may never know about it if you let them do the shopping for you.